Information supplier The Research Department claims the 10 key questions every homebuyer should ask their lender will not guarantee they get the best mortgage.
It believes the only way consumers will be able to achieve this is through independent advice.
TRD says by asking these questions, recently suggested by
Trade and Industry Secretary Stephen Byers recently suggested asking these ten questions will at least allow the consumer to go into the mortgage contract aware of all its main terms and conditions.
But TRD says it can only answer eight out of ten of the key questions. It believes only the very resourceful and determined housebuyer will benefit.
In the process of asking the questions TRD believes the purchaser may be persuaded to seek another mortgage plan because of unsatisfactory or restrictive conditions attached to the one in question.
TRD group commercial director Mark Hayes-Newington says anything helping consumers get best mortgage is a good thing.
But adds: “While the ten questions will protect consumers who have the stamina to get answers, they will not give much help in getting the best type of mortgage.”
The Ten Key Questions Are
1 What will I have to pay out each month?
2 What is the APR on this mortgage?
3 What is the best type of mortgage for me?
4 How should I repay it? What will I have to pay in total each month?
5 Can I make lump sum payments to reduce the size of the loan?
6 Are there any redemption penalties?
7 Does the mortgage come with compulsory insurance?
8 What other charges will I have to pay?
9 What happens if I can't pay?
10 What about the small print?
No database can fully answer questions 4 and 9